INVESTIGATION OF THE IMPACT OF SUKUK ON THE CONVENTIONAL AND ISLAMIC BANKING RISK STRUCTURE: A LITERATURE REVIEW
SUKUK’UN GELENEKSEL VE İSLAMİ BANKACILIK RİSKLİLİK YAPISI ÜZERİNDEKİ ETKİSİNİN ARAŞTIRILMASI: BİR LİTERATÜR ARAŞTIRMASI

Author : HATİCE ELANUR KAPLAN
Number of pages : 182-190

Abstract

Sukuk, as a Sharia-compatible and asset-based debt bill, serves a crucial financial instrument for the Islamic capital market. It can also be considered as a type of lease certificate model, which is an alternative for the state’s quest to create a public income other than privatization for some of its real estate assets. In the simplest form, the ownership of the assets remains public with the Sukuk transaction, and investors who acquire a certificate in accordance with the agreement earn an interest-free income. This study aims to explicate the effects of Sukuk on Islamic and conventional banks in terms of their risk structures by reviewing recent literature studies conducted on the subject. In this context, this study seeks to respond to questions regarding the causality between the development of Sukuk with riskiness in both Islamic and conventional banking sector. In the study, the findings and policy implications of recent empirical research studies in the pertinent literature are mainly utilized to constitute the theoretical section.

Keywords

Sukuk, Islamıc Banking, Conventional Banking, Risk

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